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ANNUAL REPORT 2011/2012
Notes to the Financial Statements
2 Summary of Significant Accounting Policies (cont’d)
Basis of Presentation
The consolidation accounting method is used for the consolidated fnancial statements that
include the fnancial statements made up to the end of the reporting year each year of the
Company and all of its directly and indirectly controlled subsidiaries. Consolidated fnancial
statements are the fnancial statements of the Group presented as those of a single economic
entity. The consolidated fnancial statements are prepared using uniform accounting policies for
like transactions and other events in similar circumstances. All signifcant intragroup balances and
transactions, including income, expenses and dividends, are eliminated in full on consolidation.
The results of the investees acquired or disposed of during the fnancial year are accounted for
from the respective dates of acquisition or up to the dates of disposal which is the date on which
effective control is obtained of the acquired business until that control ceases. On disposal, the
attributable amount of goodwill previously capitalised, if any, is included in the determination of
the gain or loss on disposal.
Basis of Preparation of the Financial Statements
The preparation of fnancial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the fnancial statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates. The estimates and assumptions are
reviewed on an ongoing basis. Apart from those involving estimations, management has made
judgements in the process of applying the entity’s accounting policies. The areas requiring
management’s most diffcult, subjective or complex judgements, or areas where assumptions
and estimates are signifcant to the fnancial statements, are disclosed in Note 3.
Revenue
Revenue represents invoiced value of goods sold and services rendered, hotel and restaurant
operations revenue, rental income and income from completed residential properties. The
Group’s revenue excludes transactions within the Group. Revenue is measured at the fair value
of the consideration received or receivable, taking into account the amount of any trade discounts
and volume rebates allowed by the Group.